Recent Posts:

3) Credit Weakness: U.S. Credit has been a bastion of strength since the lows in June 2012. The weekly chart below compares the High Yield Credit ETF (HYG) to a 7-10 year Treasury ETF (IEF). The ratio is currently at new highs, indicating the outperformance of High Yield credit which tends to be a favorable backdrop for U.S. equities. You’ll notice that the ratio started declining in early 2011, well in advance of the 21% correction in the S&P 500 that year.